8. Appendix
Appendix 1. External Evaluations
ESG Ratings
- Achieved MSCI's highest "AAA" rating for four consecutive years.
External Evaluation
Inclusion in Indices, etc.
Included for 20 consecutive years
Continuously included since the index was launched in 1999
Appendix 2. Scope of Aggregation and Calculation Method for GHG Emissions
GHG emissions are calculated based on the calculation methods stipulated in the Act on Promotion of Global Warming Countermeasures (the "Global Warming Act"), the Ministry of the Environment / Ministry of Economy, Trade and Industry Basic Guidelines on Accounting for GHG Emissions through the Supply Chain, and the GHG Protocol (2004), among others. Given the nature of the Group's business, non-CO2 GHG emissions are negligible, so only CO2 emissions are calculated. To ensure timeliness and reliability, the latest publicly available emission factors as of the end of the calculation period (March 31) are used.
Scope 1 and Scope 2
- [Domestic scope] Three companies: Daiwa Securities Group Inc., Daiwa Securities, and Daiwa Institute of Research. Data for GranTokyo North Tower (the Group's headquarters), the Daiwa Yaesu Building, the Daiwa Toyocho Building, and the Daiwa Ginza Building includes energy use managed by Group companies other than the above.
- [Overseas scope] Energy consumption managed by certain Group companies located in London, New York, Hong Kong, Taipei, Singapore, Seoul, and Washington, D.C.
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[Calculation methods]
Calculated with reference to the methods stipulated in the Act on Rationalization of Energy Use and Shift to Non-fossil Energy and the Global Warming Act, and the GHG Protocol (2004); disclosed figures are rounded. Scope 1 and Scope 2 emissions are estimated by multiplying the usage of each item below by the relevant emission factors.
- Scope 1: City gas, LP gas, heavy oil, diesel, kerosene, gasoline.
- Scope 2: Electricity, steam, hot water, cold water.
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A) Electricity:
- Market-based: Domestic sites use the "emission factors by electricity provider (basic emission factors)" published by the Ministry of the Environment; overseas sites use factors per contract with the energy supplier or location-based factors (some estimated).
- Location-based: Domestic sites use the national average factor (alternative value); overseas sites use published factors by region, or country-level factors published by Carbon Footprint Ltd where regional factors are unknown.
- B) City gas: Domestic sites use each provider's CO2 emission factor or heat value combined with the Global Warming Act factor; overseas sites use an equivalent method based on heat values and emission factors stipulated under the Global Warming Act.
- C) LP gas, heavy oil, diesel, kerosene, gasoline, steam, hot water, and cold water: Calculated by multiplying usage-based totals by emission factors published by the Ministry of the Environment.
Scope 3
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[Scope]
- Category 6: Daiwa Securities Group Inc., Daiwa Securities, and the London and Hong Kong offices.
- Category 7: Daiwa Securities.
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[Calculation methods]
Calculated using emission factors from the Database of Emission Factors for Accounting of GHG Emissions through the Supply Chain (Ver. 3.6) and IDEA v2.3 (for supply-chain GHG emissions); figures are rounded to the nearest whole number.
- Category 6: Person-kilometers for overseas business travel (international flights) by officers and employees at applicable sites, multiplied by emission factors.
- Category 7: Commuting expenses paid to officers and employees at applicable sites, multiplied by emission factors and attendance rates.
Basic Formula for Financed Emissions in PCAF
Financed Emissions = ∑ (1) Attribution factor i × (2) Emissions i
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The scope of aggregation and calculation methods will be reviewed as necessary in line with future developments in domestic and international guidance and standards.